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Fundamentals of Business Torts
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Negligence
A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances. Examples: Slip and fall accidents, professional malpractice.
Tortious Interference
Intentionally damaging the plaintiff's contractual or business relationships. Examples: Contract interference, predatory pricing to drive away competitors.
Defamation
An untrue statement that harms the reputation or standing of an individual or business. Examples: Libel in a newspaper article, slander in a public speech.
Fraud
Intentional misrepresentation of material fact by one party to another, who consents to enter into a contract or transaction based on the misrepresentation. Examples: False advertising, securities fraud.
Product Liability
The legal liability a manufacturer or seller incurs for producing or selling a faulty product. Examples: Defective equipment, contaminated food.
Breach of Fiduciary Duty
A situation where someone in a trusted position violates the obligation to act in the best interest of a client or trustor. Examples: Self-dealing by a company director, misuse of client funds.
Conversion
An intentional act that deprives an owner of personal property without their consent. Examples: Theft of company resources, unauthorized sale of company assets.
Unfair Competition
Acts by businesses to gain an unfair advantage over competitors. Examples: Trademark infringement, misleading advertising.
Public Nuisance
An act that interferes with the public's right to use and enjoy public spaces or resources. Examples: Pollution by factories, obstructing public roadways.
Private Nuisance
A disturbance or interference with an individual's enjoyment or use of their property. Examples: Loud noises from a neighboring business, encroachment of structures.
Trade Libel
The publication of a false statement of fact that is damaging to a business' product or services. Examples: False claims about a competitor's product, unjustified negative reviews.
False Advertising
Advertising that is misleading or false in any material aspect. Examples: Exaggerated product claims, hidden fees not disclosed.
Breach of Contract
Failure to perform any term of a contract without a legitimate legal excuse. Examples: Non-delivery of goods, failure to pay for services provided.
Misappropriation of Trade Secrets
The theft or unauthorized disclosure of trade secrets. Examples: Industrial espionage, employee theft of client lists.
Interference with Prospective Economic Advantage
Unjustified interference with the plaintiff's reasonable expectation of entering into a valid business relationship. Examples: Slander that turns away potential clients, spreading false rumors about a competitor.
Economic Duress
A situation where one party compels another to agree to a contract by threatening the victim's economic interests. Examples: High-pressure sales tactics, 'take it or leave it' contract terms.
Wrongful Discharge
Terminating an employee's employment in violation of the law or an employment contract. Examples: Firing without cause when a contract requires it, discrimination.
Invasion of Privacy
An intrusion upon a person's solitude or into private matters. Examples: Unauthorized use of a person's likeness, public disclosure of private facts.
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